At Belvo, we’re driven by a singular mission: to democratize access to financial services and improve financial inclusion in Latin America. This vision is powered by our technology, including proprietary models of machine learning and an unique approach on how to treat financial data. In the latest episode of Conversations with Our Experts, Belvo’s Chief Technology Officer, Giuseppe Ciotta, shared insights into how our approach in AI is driving innovation at Belvo and shaping the financial landscape in the region.
Table of Contents
- Belvo’s journey from data to innovation
- How AI financial modeling shapes Belvo’s products
- Balancing insights with privacy for a responsible AI financial modeling approach
- Driving financial inclusion through tech and the future of AI in financial services
Belvo’s journey from data to innovation
Since its founding, Belvo has focused on creating data-driven solutions to enhance financial services. As Giuseppe explains, the journey began with the challenge of financial inclusion—a pressing issue in Latin America that Belvo aimed to solve through technology.
With over 40 million users across the region sharing their financial data through Belvo’s platform, the company has evolved from launching initial products of data aggregation to developing sophisticated solutions powered by extensive datasets.
“Data opens so many doors,” Giuseppe noted. “It enables us to create more advanced products, improve machine learning models, and tackle complex problems with precision.”
How AI financial modeling shapes Belvo’s products
Belvo’s AI journey began with its transaction classification engine, an essential tool that categorizes financial transactions into groups like utility bills, groceries, or salary payments. This foundation paved the way for advanced products, including:
- Income detection models: These analyze transactions to determine salary patterns, bonuses, and income verification.
- Credit scoring tools: Predictive models assess an individual’s ability to repay loans, a critical feature for lenders, such as Open Finance Score in Brazil and Employment Score in Mexico.
- Segmentation and personalization: AI identifies consumer behavior patterns to create tailored financial experiences.
Giuseppe highlights personalization as one of the most exciting applications of AI, envisioning a future where banks anticipate user needs – such as recommending travel insurance after detecting a recent flight purchase.
Balancing insights with privacy for a responsible AI financial modeling approach
AI’s potential comes with significant ethical responsibilities. At Belvo, maintaining user privacy and ensuring compliance with local regulations are central to the development process. Key practices include:
- Data Anonymization and Minimization: Collecting only the necessary data to build models while preserving quality.
- User Consent: Ensuring end-users are informed and agree to how their data will be used.
- Bias Mitigation: Building explainable AI models that avoid decisions influenced by inherent biases.
“We take privacy and compliance seriously,” Giuseppe emphasized. “It’s crucial to operate with transparency and respect for the user.”
Driving financial inclusion through tech and the future of AI in financial services
Looking ahead, Giuseppe discussed the transformative potential of AI in reshaping financial services. While AI is already enhancing customer support with chatbots and automating routine tasks, its application in core banking functions remains nascent.
Belvo’s focus is on leveraging AI for structured data, such as transaction histories, to develop even more sophisticated financial solutions. This innovative approach positions Belvo at the forefront of integrating advanced AI technologies into Open Finance.
AI’s ability to analyze hundreds of financial variables is a game-changer for financial inclusion. By providing a holistic view of a user’s financial life, Belvo enables access to credit and other financial products that might otherwise be unavailable.
“Our mission is to democratize financial access,” Giuseppe concluded. “AI helps us create opportunities that empower individuals across Latin America.”
As Belvo continues to innovate, the intersection of AI, Open Finance, and data promises to unlock new possibilities for the region. By bridging the gap between financial products and underserved populations, Belvo is shaping a future where financial inclusion becomes a reality for all.
